Challenges faced by International ales Managers

Challenges faced by International Sales Managers By Akshai Puri

Index

AbstarctIntroduction

Global Business of Growing Organizations Global Business: Opportunities, ChallengesAspects about the sales manager occupationNew EnvironmentConclusionsReferences

Abstract

In the twenty first century, Business Environment is becoming more complex, interdependent and dynamic. Managements have to restructure their strategies and management styles according to the regions of the world, they are operating in. The typical challenges that managements face are political, economic and cultural changes along with advancement in technology. In addition to the vast opportunities while operating in global community, it is also associated with relative high risks and the projected return on investments in the global market. Business Environment risk has increased obligations of managements to improve their ability to develop, produce and market global brands. To compete aggressively, organizations have to make considerable investments globally, not only capital investment but also human resource investment like trained managers, skilled workforce to operate effectively in a multicultural environment. Managements are focusing to become accustomed to global environment change and attain new capabilities, in job skills, modes of learning, management approaches and research efforts. Managing political and economic risk is a challenge for multinational organizations, they have to maintain an up to date profile of countries they are operating in. Global operations of organizations are also associated with social responsibility, ethical behaviour and interdependence which directly affect their sustainability and profitability. The ethical challenge that globalization presents is political and economic freedom, that is essential for the development of any society, but human resource development is critical in developing these capabilities. Due to interdependent nature of developing economies the global organizations must set high ethical norms and lay the groundwork for future economic development by cooperating with social, political and economic conditions prevailing in the regions they are operating in.When it comes to thinking about sales leadership these days, most executives just dont get it. Chief sales officers and even chief executive officers, who recognize that the sales organization drives top-line growth often have an incomplete notion of the CSOs job.

Sure, they understand that leading the modern sales organization takes much more than motivating and managing salespeople. In recent years, the sales manager have had to devote considerable time and energy to establishing and maintaining disciplined sales processes, including everything from customer segmentation to sales staff compensation. Given the complexity of those processes, even well-run sales departments have to work hard to get them all operating smoothly. The heightened expectations of customers, peer executives in other functions, and the sales force itself require the head of sales to shoulder mew responsibilities, ones that have changed the job almost beyond recognition from what it was 20 years ago. In this article are presented the ways in which the business environment has changed the sales chiefs job. Then the article describes the new roles that sales leaders increasingly must play.

Introduction

Global Business of Growing Organizations

Need for globalization of business arises due to the many factors. Rapid progress in the field of communication, technology and transportation has enabled communities to interact with other communities and the products and services used by them1. In order to develop trade and business the Governments today are imposing less restriction thus allowing products and services across the borders. This has enabled the governments to provide easier access to variety of goods and services at competitive prices. Countries are developing infrastructure as per international norms to provide favorable conditions for foreign investment that is the key to development in this modern world. This includes laws, policies, banking, transportation etc. Consumer behavior is changing due to new innovative products and services that they require to meet their requirements thus pressurizes organizations to introduce new innovative products and carry out research and development activities to satisfy their customers and gain market share. Global operations of organizations lead to development of good quality cheap products as they are able to fully utilize global resources to develop such products and thus give rise to competition in different markets especially to domestic organizations. The factors constituting Global Business Environment are Political, Economic, Technological, social and Cultural Environment. Political and Economic Environment relates to global trade agreements, liberalization policy influencing trade barriers, foreign investments, privatization and the opening up of the economies2. Technological Environment relates to innovative communication technology, global communication networks, internet and network computing, quick and safe logistic services, innovative methods of production using new technology. Social and Cultural Environment relates to elements of social traditions and cultural behaviour like attitude, belief, opinion that characterizes distribution of human population worldwide.

International business differs from domestic business, as it involves three environments: Domestic; Foreign; International3. The kinds of forces are the same but their values often differ and changes in the values of foreign forces are at time more difficult to assess. International environment interacts between the domestic environmental forces and the foreign environmental forces and interactions between the foreign environmental forces of two countries when an affiliate in one country does business with customers in another. The three environments in which an international company operates are domestic, foreign and international. Domestic environment is composed of all the uncontrollable forces originating in the home country that influence the firms life and development. Foreign environment is composed of all the uncontrollable forces originating outside the home country that influence the firm, the kinds of forces are the same as those in the domestic environment but their values often differ and changes in the values of foreign forces are at time more difficult to assess. International environment is interaction between the domestic and foreign environment forces or between sets of foreign environment forces.

Global Business Environment: The external or uncontrollable forces in both the domestic and the foreign environments surround the internal forces controlled by management. The domestic environment of the international firms home country is surrounded by as many sets of foreign environments as there are countries in which the company does business4. Solid lines connecting the internal forces at the home office to the internal forces in the foreign affiliates indicate the lines of control. The orange areas indicate the international environment in which personnel in the headquarters of the firm work. The light orange is the domestic environment and the blue depicts foreign environment. The global business operation issues constitute Global issues, market analysis, competitive advantage, organization management, effective marketing strategy. Global issues include raises concern about the existing political system, legal system, policies, social and cultural issues etc. Market Analysis is required by organization before they enter into the new market i.e. type of products and services that are required to be offered. Competitive Advantage is the major factor for business operation worldwide. It is only the competitive advantage that will benefit the organization to take a leading edge in the market that helps in reducing costs by achieving economies of scale. Organization Management is essential to operate an organization internationally as skilled manpower will be required for its functioning with consideration of social and cultural differences. Without an effective strategy the organizations cannot succeed. So it has to formulate its strategy according the conditions prevailing in the market.

Global Business: Opportunities, Challenges and Network Approach: The business environment in twenty first century is increasingly complex, interdependent and dynamic. Organizations operating globally have to adjust their strategies and management styles to those regions of the world in which they want to operate, whether directly or using an alliance / partnership. The organizations perceive the world as one market and thus they do not want to confine themselves to domestic market. They perceive international markets as an opportunity therefore their main focus is growth and sustainability through global operations. To achieve this, the firms produce highly specialized customized goods for international markets and they have access to international networks, human resources and financial markets. Their focus is on internationalization i.e. to develop capability for internationalized operation, to form a strategy to operate internationally, to utilize worldwide resources in order to compete internationally and follow a sustained growth. Typical challenges that the organizations face in international operations are political structure, legal, social and cultural system, technology and primarily the opportunities and risks in investment in global markets5. To compete internationally, organizations have to make investment, not only capital investment but also investment in human resource in order to have well trained and skilled workforce so as to work effectively. Global management is a process of developing strategy as per existing conditions, designing and operating work systems and intermediating with people having different social traditions and cultures, around the world.

Business competitiveness has now evolved networks of international linkages that bind countries, institutions, and people in an interdependent borderless world. As reported by the World Trade Organization, differences in regional output growth rates have narrowed, as economic activity picked up, it is clear that world trade is phenomenal and growing and, importantly, is increasingly including the developing nations. Almost all organizations around the world are affected to some extent by globalism. Organizations from any country now compete with organizations both at home and abroad and desire to expand their operations to other countries with experience workforce and an understanding of what it takes to do business in other countries and to work with people of other cultures. Comprehensive political, economic and social changes around the world, today present new challenges to organizations. The increase in democratic form of Government is on the rise and communism is losing its ground. Liberalization and Privatization, has had an enormous influence on the world economy. Economic freedom is a critical factor in the relative wealth of nations. One of the most striking changes today is that almost all nations have suddenly begun to develop decentralized, free market systems in order to manage a global economy having intense competition, high-tech industrialization, innovative communication and technology.

Organizations use local business partners in the early stages of international operations because they required local support to utilize local available resources6. Due to lack of sufficient information and knowledge and international policies, it is difficult to establish its fully owned subsidiary overseas. Thus, business network is required to enable extensive global coverage and to get exposure to multiple markets. Such need for business network resulted in formation of MNC's (Multi-National Corporations) that follow a global network approach to operate in foreign markets. Small companies are also affected by globalism and they play a vital role in contributing to their national economies by entering into partnerships with MNC's, thus generation employment, developing new products and providing international services, typically importing or exporting. The vast majority of businesses in developed economies are small and medium sized enterprises (SMEs), which are typically referred to as those companies having less than 500 employees. Small businesses are rapidly discovering foreign markets with the help of global network approach.

Sales managers direct the firms sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. Sales managers advise the sales representatives on ways to improve their sales performance. Inlarge, multi-product firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and to monitor customers preferences. Such information is vital in the development of products and the maximization of profits [6].

Nowadays, every good manager spend time in the field with the sales force and often acts as salesperson-in-chief to certain major customers. Selling is changing fast and in such way that sales teams have become strategic resources. When corporations strive to become customer focused, salespeople move to the foreground; product engineers recede. As companies go to market with increasingly complex bundles of products and services, their representatives cease to be more order takers (most orders are placed online, anyway) and become relationship managers. The organization of the sales force and the incentives its given are among the most crucial decisions executives make. When companies get into trouble because of misalignment, the chiropractic needed almost invariably involves the sales force. Reorganizing a sales force is one of the riskiest projects a company can undertake a heart transplant [5], where a mistake can ruin careers and cost a company years of profit. Last, and far from least, sales is where the money is. At the top of the game, sales managers from big corporations may be responsible for hundreds of millions in revenue.

A study of Different Business Environment

Stable Political Environment worldwide builds confidence in business organizations and helps in promoting business. The Organizations need to examine the political risks associated with certain countries and the implications of those risks for the economic success. Political risks are any governmental action or politically motivated event that could adversely affect the long run profitability or value of an organization7. International organizations must conduct political risk assessment to manage their exposure to risk and to minimize financial losses. Typically, organizations assess destabilizing issues and evaluate their future impact on their operations, making strategy accordingly to deal with future problems that can arise.

In case of less developed countries (LDC's), the political risk is high on account of less distinct Government policies and laws. The gross national product (GNP) and per capita income in LDC's is low and they are trapped in vicious circle of economy that constitutes of undeveloped infrastructure, unskilled and unemployed workforce, relatively less educated population and high international debt. Their economic condition is miserable and so cannot attract foreign investment that they need. Many countries in Central and South America, the Middle East and Africa desperately fail to attract foreign investment to stimulate economic growth. Organizations hesitate to invest in such economies due to economic and political risks.

Technology, in general, is the application of the sciences to the objectives of industry, business, government systems, and human endeavours in general. Technology, as a process, is a socio technical means of defining and solving problems. Global business today is transformed due to rapid advancement in the field of information technology (IT). The speed and accuracy of information transmission have broken geographic barriers and information can no longer be centrally or secretly controlled by nations / governments. The political economic, market and competitive information is available almost instantaneously all around the world, enabling accurate and timely decision making possible. Even cultural barriers are being lowered gradually by the role of information in educating societies about one another. Consumers today, around the world, have become more aware, through various media, about living standards, tastes and their preferences. The growth of information technology is both a cause and an effect of globalism. The information revolution has contributed in increasing productivity around the world. In addition, use of the Internet is propelling electronic commerce around the world. Companies around the world are linked electronically to their customers, distributors, suppliers, and alliance partners in many countries. So, perhaps IT is not yet "borderless" but rather is subject to the same norms, preferences, and regulations as "human" cross-border interactions.

Culture is the context in which an organization operates8. It constitutes behavior of groups characterized by customs, values and habits. It is Collective programming of the mind which distinguishes the members of one human group from another. It is glue that binds groups together. Without cultural customs, values, habits, shared beliefs, attitudes, norms; rules people would have difficulty living together. Modern cultures are thus characterized by an individual orientation, basis of purchasing power display exercise of individual freedom; emphasis on material achievements and values of this area; an economic sense, materialistic time; a tendency to disregard the past in relation to the future; a high degree of utilitarianism. The influences of cultural factors in this complex system level integrated markets, international trade, international investment, multinational corporations; technology convergence is a major significance7. In the same time a combination of globalization Culture is a risk factor for both the international trade system, but also cultures and national identities and individual affected by this phenomenon. The global business environment is different depending on the type of response of the receiving area of culture. Thus, there were three main types of reaction: passive, participative or conflict. The combination of different cultures results in variety and diversity of cultural products, threats to local cultures and evolves a mixture of cultures resulting in a global blend.

Risk Management

The attribute of Management is the decision making capability; which means to take right decision from a variety of possible actions, by consideration the business environment, in order to achieve the target objectives9. An international business is carried on in extremely diverse external environments and in unpredictable conditions. The organizations have to accept the constructive opportunities and neglect unfavourable conditions to limit the possible losses by taking right decision at right time. From this point of view, the adopted short or long run decisions, for the moment carries the mark of three situations, in which the decedents may found themselves decisions taken in certainty conditions, decisions taken in uncertainty conditions, decisions taken in risk conditions. Under the impulse of the need of conceptual synthesizes and practical operability, there exists the tendency to define the three statuses as concise and relevant. If the risk is relatively low in a particular country or that a high-risk environment is worth the potential returns, then organizations try to overcome risk by using the next explained strategy. Equity sharing includes the initiation of joint ventures with local organizations or government to reduce political risks. Participative management requires that the firm actively involve local organizations or government, in the management of the subsidiary. Localization of the operation includes the modification of the subsidiary's name, management style and so forth, to suit local tastes. Localization seeks to transform the subsidiary from a foreign firm to a national firm. Development assistance includes the organizations active involvement in infrastructure development process of local country10. A country's level of economic development generally determines its economic stability and, therefore, its relative risk to a foreign firm. Most industrialized nations pose little risk of economic instability; less developed nations pose more risk. MNC's operating overseas exposes itself to some level of economic risk, often affecting its everyday operational profitability, organizations constantly re-assess the level of risk that they may face in any specific country or region of the world. Four methods of analyzing economic risk, or a country's creditworthiness are recommended are quantitative approach attempts to measure statistically a country's ability to honor its debt obligation; evaluates a country's economic risk by assessing the competence of its leaders and analyzing the types of policies they are likely to implement; Checklist approach relies on easily measurable and timely criteria indicators that measure credibility of a country. Researchers develop various susceptible indicators that categorize countries in terms of their ability to withstand economic volatility.

Differences in laws and regulations from country to country are numerous and complex. A country's tax system influences the attractiveness of investing in that country and affects the relative level of profitability for an MNC. Foreign tax credits, holidays, exemptions, depreciation allowances and taxation of corporate profits are additional considerations the foreign investor and it must be examined before investing11. Many countries have signed tax treaties that define such terms as "income," "source," and "residency" and spell out what constitutes taxable activities. The level of government involvement in the economic and regulatory environment varies a great deal among countries and has a varying impact on management practices.

Managing Interdependence: Social Responsibilityand Ethical Standards

Global business mandates that companies manage their worldwide operations efficiently and effectively on the basis of openness, corporate integrity, and ethical standards12. Although global markets have become a reality in many countries, national rules and the regulatory environment continue to be local, often providing loopholes for the companies because of weaker supervision by the enforcement agencies. Many organizations have been found abusing their corporate powers and breaking rules that led to massive corporate losses and bankruptcies. Global interdependence is a compelling factor in the global business environment, creating demands on international organizations to take a positive stance on issues of social responsibility and ethical behavior, economic development in host countries and ecological protection around the world. Organizations are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, from interest groups, from legal and governmental concerns and from media coverage13. In August 2003, for example, the United Nations published draft guidelines for the responsibilities of transnational corporations and called for companies to be subject to monitoring, verification, and censure. Though many companies agree with the guidelines, they resist the notion that corporate responsibility should be regulated and question where to draw the line between socially responsible behavior and the concerns of the corporation's other stakeholders. In the domestic arena, organizations are faced with numerous ethical complexities. In the international arena, such concerns are compounded by the larger numbers of stakeholders involved, including customers, communities, allies and owners in various countries.

Social responsibility issues of social responsibility continue to center on the poverty and lack of equal opportunity around the world, the environment, consumer concerns and employee safety and welfare14. MNC's operate in a global environment, they should use their capital, skills, and power to play proactive roles in handling worldwide social and economic problems and that, at the least they should be concerned with host country welfare. The sales, debts and resources of the largest multinationals exceed the gross national product, the public and private debt, and the resources, respectively, of some countries. The international social responsibility includes the expectation that MNCs concern themselves with the social and economic effects of their decisions. The issue is how far that concern should go and what level of planning and control that concern should take. The responsibility of a business is to make a profit, within the confines of the law, in order to produce goods and services and serve its shareholders interests and along with this organizations should look forward to solve problems in society. The increased complexity regarding the social responsibility and ethical behavior of firms across borders is brought about by the additional stakeholders in the firm's activities through operating overseas like discontinuing bankruptcy, corruption, child labor etc. With the growing awareness of the world's socioeconomic interdependence, global organizations are beginning to recognize the need to reach a consensus on what should constitute moral and ethical behavior. Some think that such a consensus is emerging because of the development of a global corporate culture an integration of the business environments in which firms currently operate.

Globalization has multiplied the ethical problems facing organizations. Yet business ethics have not yet been globalized. Globalization has multiplied the ethical problems facing organizations. Yet business ethics have not yet been globalized. Attitudes toward ethics are rooted in culture and business practices. Corporate world has learned that international business ethics is a major priority and that companies must pay attention to their relationships with society and other entities. The biggest single problem for MNCs in their attempt to define a corporate wide ethical posture is the great variation of ethical standards around the world15. Many practices that are considered unethical or even illegal in some countries are accepted ways of doing business in others. Social responsibility and ethical standards are not options but rather integral parts of organizations global operations. Organizations should adhere from bribery, making illegal payments or other gifts, or political contributions to foreign government officials for the purposes of influencing them in business transactions, failing which, in the long run, MNC's will be considered as irresponsible outsiders and dim their prospects for the future

1. Aspects about the sales manager occupation

Work environment. Sales managers work in offices close to those of top managers. Working under pressure is unavoidable when schedules change and problems arise, but deadlines and goals must still be met. Substantial travel may be involved. For example, attendance at meetings sponsored by associations or industries often is mandatory. Sales managers travel to national, regional, and local offices and to the offices of various dealers and distributors. Job transfers between headquarters and regional offices are common, particularly among sales managers. Long hours, including evenings and weekends are common.

A wide range of educational backgrounds is suitable for entry into sales managerial jobs, but many employers prefer those with experience in related occupations.

Education and training. For sales, marketing and promotions management positions, some employers prefer a bachelors or masters degree in business administration with an emphasis on marketing specialization. Courses in business law, management, economics, accounting, finance, mathematics, and statistics are advantageous. Additionally, the completion of an internship while the candidate is in school is highly recommended. In highly technical industries, such as computer and electronics manufacturing, a bachelors degree in engineering or science, combined with a masters degree in business administration, is preferred [7].

Most sales management positions are filled by promoting experienced staff or related professional personnel. For example, many managers are former sales representatives, purchasing agents, buyers, or product, advertising specialists. In small firms, where the number of positions is limited, advancement to a management position usually comes slowly. In large firms, promotion may occur more quickly.

Other qualifications. Familiarity with word-processing and database applications is important for most positions. Computer skills are vital because marketing, product promotion and advertising on the Internet are increasingly common. Also, the ability to communicate in a foreign language may open up employment opportunities in many rapidly growing areas around the world, if we take into consideration the globalization effect on business environment.

Persons interested in becoming sales managers should be mature, creative, highly motivated, resistant to stress, flexible, and decisive. The ability to communicate persuasively, both orally and in writing, with other managers, staff, and the public is vital. These managers also need tact, good judgment, and exceptional ability to establish and maintain effective personal relationships with supervisory and professional staff members and client firms.

Certification and advancement. Some associations offer certification programs for these managers. Certificationan indication of competence and achievement is particularly important in a competitive job market. While relatively few sales managers currently are certified, the number of managers who seek certification is expected to grow [6]. Today, there are numerous management certification programs based on education and job performance.

Although experience, ability, and leadership are emphasized for promotion, advancement can be accelerated by participation in management training programs conducted by larger firms. Many firms also provide their employees with continuing education opportunitieseither in-house or at local colleges and universitiesand encourage employee participation in seminars and conferences, often held by professional societies. In collaboration with colleges and universities, numerous marketing and related associations sponsor national or local management training programs. Course subjects include brand and product management, international marketing, sales management evaluation, telemarketing and direct sales, interactive marketing, promotion, marketing communication, market research, organizational communication, and data-processing systems procedures and management. Many firms pay all or part of the cost for employees who successfully complete courses.

Because of the importance and high visibility of their jobs, sales managers often are prime candidates for advancement to the highest ranks. Well- trained, experienced, and successful managers may be promoted to higher positions in their own or another firm; some become top executives. Managers with extensive experience and sufficient capital may open their own businesses.

2. New environment

If we will examine the calendar of any successful chief sales officer, we will see how complex the job has become [4]. That complexity stems from the following changes, which have affected sales activities at most major companies.

Customers have gained power. Its no secret that in many industries, supply outstrips demand. Customers have more choices and more information thanks largely to the Internet about what they can buy and how they can buy it. The shift in power from sellers to buyers has made customers demand more of their suppliers and the buying experience.

Customers have gone global. The globalization of business made the structure of many sales organizations (those with a regional or national focus) anachronistic. Suppliers had better be sure that their organizations mesh with their customers global orientation and sourcing processes.

Channels have proliferated. At one time, the direct sales force was the sales organization. Today, most companies, regardless of size, go to market through multiple channels. The sales organization may comprise not only people employed by the company field sales, telesales, and online reps but also those outside the company, including partners and resellers.

More product companies sell services. Whether wrapped around or embedded in products, complementary services have become a way to enhance or simply maintain a products competitive edge. Selling these services calls for a special mind-set. The holistic approach required to seamlessly package products and services together is very different from the traditional selling of product. The reason for the difference, he says, is that after a certain period of time, a customer stops buying your product and starts buying your strategy.

A lesson that sales leaders must learn is about matching the sales force structure to the business life cycle [1]. Although companies devote considerable time and money to managing their sales forces, few focus much thought on how the sales force needs to change over the life cycle of a product or a business. However, shifts in the sales forces structure are essential if a company wants to keep winning the race for customers. Specifically, a sales manager must alter four factors over time (Table 1):

The four factors for a successful sales forceTable 1

Factors

Business life cycle stage

Start-up

GrowthMaturityDecline

Emphasis

Role of sales

force and

selling

partners

Size of sales

force

Degree of

specialization

Sales force

resource

allocation

Underlyingcustomer strategy

Create

PenetrateFocus onEmphasize

awareness

deeper intoefficientlyefficiency,

and generate

existingserving andprotect critical

quick product

segmentsretainingcustomer

uptake.

and developexistingrelationships,

new ones.customers.exit

unprofitable

segments.

Source: Andris A. Zoltners, Prabhakant Sinha, Sally E. Lorimer Match your sales force structure to your buiness life cycle, Harvard Business Review Special Double issue: Sales, July-August 2006

These variables are critical because they determine how quickly sales forces respond to market opportunities, they influence sales forces performance, and they affect companies revenues, costs and profitability. Businesses tend to change their sales structures only when major events such as the failure to meet targets, a change in rivals strategies, or mergers force them to do so.

This conservatism doesnt serve companies well. The sales force structure that works during start-up is different from what works when the business is growing, during its maturity, and through its decline. The four life-cycle phases arent mutually exclusive, some companies display characteristics of more than one stage at the same time. These days, businesses tend to go through the four phases more quickly than they used to, which makes it even more important to have a flexible sales force.

During start-up, smart sales managers focus on whether they should depend on selling partners or create their own sales forces. If they decide to set up sales organizations, they pay a lot of attention to sizing them correctly. As companies grow, sizing issue become even more important. In addition, executives must decide when to invest in specialist sales forces. When businesses hit maturity, the emphasis shifts to making sales forces more effective by appointing account managers and better allocating salespeoples resources, and making them more cost-efficient by using less expensive people such as telesales staff and sales assistants. Finally, as organizations go into decline, sales leaders attention shifts to reducing the size of sales forces and using even more cost-efficient ways to cover markets.

3. New roles

These changes in the business environment have made running a sales organization more demanding than its ever been. No other function bears such exposed responsibility for delivering on the numbers. The successful sales manager also needs to oversee sophisticated processes for such tasks as customer segmentation processes that not long ago represented state-of-the-art practice but today are considered sales essentials. In addition, sales managers must take on five new distinct roles [4].

Company leader. The sales manager must hit his targets while ensuring that the sales organizations actions at all levels and across all channels support the companys strategy. Striking that balance means communicating broader goals to the rank and file, so salespeople can connect their day-to-day responsibilities with the big picture; it also calls for effective collaboration with other functions. Sales leaders can no longer think of themselves as working in a tight little box, responsible only for revenue generation and relationship management.

Every sales manager face similar general objectives: achieving revenue growth, launching new products, acquiring customers, expanding business with current customers, improving sales productivity, and containing or reducing selling expenses. Only through strong leadership can sales chiefs make it clear how these goals can be achieved in support of corporate strategy. In fact, at least 15% of a sales managers time should be spent establishing and communicating a clear course for accomplishing the current years business plan.

The best sales chiefs are, along with the rest of the senior executive team, leaders of the company as a whole. They actively participate in formulating company strategy as well as executing it. No enlightened manager considers entering a new market, expanding the companys product portfolio, or taking on a new channel without seeking the advice of the sales manager. For instance, a sales chief can offer valuable insights about the companys customers: what their particulars needs are, what products are needed on the market [2].

A sales manager can take on an ever higher profile role in a company where the sales function hasnt traditionally been a priority, such as in a professional services firm or real estate investment trust. In such a case, the sales manager must lead a cultural revolution, building a sales organization that promotes the firms commitment to growth in partnership with its customers.

Customer champion. If the customer is the king these days, who lives within his inner circle? Of all the functions, the sales organization comes closest, and the sales manager is thus the most effective conduit for funneling customer-related insights to the rest of the senior executive team. The successful sales leader spends more time with customer today not only because they have valuable things to say but also because they demand to be heard by their suppliers most senior people.

Customers want close contact with their suppliers senior executives in order to understand product strategy, look at new offerings in advance, and help with decisions about new future products will meet their particular needs [3]. They also want top -level contact so they will have someone to call when something goes wrong an inevitability in even the best of customer-supplier relationships. Of course, it isnt always easy for suppliers to forge these high-level relationships, especially since customers purchasing managers (who are growing more sophisticated and aggressive and are charged mainly with getting the best price) may view such relationships warily.

Organization architect. A good sales manager should also spend a significant amount of his time evaluating and occasionally redesigning the sales organizations structure to ensure that it supports the companys strategic goals. Often, this involves finding the right balance between specialized and generalized sales roles. As a suppliers product portfolio grows larger and more complex, though, or if the customers are numerous and form different industries, some sales specialization is usually required. Indeed, the broader the portfolio and the greater the number o markets in which the customers operate, the greater the need for specialization. That need can be met by a sales force of a generalist sales reps supported by a product sales specialists, for instance, or by separate specialty forces dedicated to a single product or market.

Course corrector. A sales manager always needs to be looking at some point of the horizon, then designing and redesigning the sales organization to help company get there. Performance is expected, so the sales managers have to manage their organizations for results, using short-cycle data and analysis. Investments in staff, technology, and tools for account planning, forecasting and quota allocation havemade sales performance data - organized by segment, channel, and sales process more readily available to sales executives.

Process guru. As we have seen, CSOs increasingly must have a dual perspective, looking outward toward customers and inward at their own organization. Over the paste decade, they have honed their processes for selling products and services and managing customer relationships. In fact, a sales manager may spend 10% to 20% of her time defining, creating, managing, and improving such processes.

The focus on process has become particularly important as many organizations have moved beyond selling discrete products or services and toward solution selling, putting together bundled offerings of products and services designed to meet important customers individual needs. Careful reinvention and over sight of the sales process are critical also in the case of a merger, an acquisition, or a new product introduction.

4. Selling to solve

Its the byword of modern marketing: instead of selling simple products of services, companies sell solutions. That presents particular challenges for sales leaders to manage. Instead of simply getting a customer to choose their products over rivals, they draw on an array of corporate and external capabilities to design an integrated offering, meant to solve a customer specific problem.

Companies view solutions selling as a way to built strong relationships with customers and earn price premiums for the value they deliver. Because it can be incredibly inefficient and expensive, however, suppliers must identify most strategic customers and offer solutions packages only to them. Even after doing this, suppliers may learn that some of these customers arent interested in making the investment on their end. Customers might want to do things the old way, simply completing a transaction to buy a product or service.

Too often, companies commit to solutions selling without completely understanding what they need to be successful. The sales manager considering this approach not only must understand the process but also must structure the organization to support it. That includes having the competencies somewhere in the organization, if not in sales to negotiate with external partners who will be needed to help crafts solutions. It also means that the field organization must be trained in solution selling. Whereas the traditional sales relationship involves a series of transactions, selling solutions calls for a consultative relationship in which those who do the selling add value. Finally, the sales manager needs to confirm that the delivery organization has been trained in solutions implementation, since the customer is going to hold the supplier accountable for a single point of delivery.

Conclusions

In recent years, sales leaders have had to devote considerable time and energy to establishing and maintaining disciplined processes. The thing is, many of them stop there and they cant afford to, because the business environment has changed. Customers have gained power and gone global, channels have proliferated, more product companies are selling services, and many suppliers have begun providing a single point of contact for customers. Such changes require todays sales leaders to fill various new roles.

Sales executives understand that the new selling context has real implications for how they hire, train, manage, coach, and retain salespeople. Sales reps must be able to dive deep, answering specific technical questions, and fly high, providing purchase-justification arguments, solid business cases, and assessments of overall performance impact. They must provide more nuanced application knowledge and be able to unhook some of what buyers believe they know without alienating them. The pressure to raise the salespersons game is all the more intense because, when customers dont perceive any added value from their interaction with a seller, the buying process can shift dramatically.

The pressures on a sales manager come from without and within, from above and below. This article laid out a daunting of portfolio of roles that a sales leader must embrace if his organization is going to provide the profitable top-line growth the company expects. Over time, the job description is likely to become even more demanding. A sales manager must hold the view that a sales, as a function, is continuously evolving. There is no constant state, only a state in which you are clear about what you need to be changing to in order to succeed.

References

Andris A. Zoltners, Prabhakant Sinha, Sally E. Lorimer Match your sales force structure to your buiness life cycle, Harvard Business Review Special Double issue: Sales, July-August 2006, pg. 81-89

Cynthia A. Montgomery Putting Leadership Back into Strategy, Harvard Business Review Special Double issue: Leadership&Startegy, January 2008, pg. 54-61

Erin Anderson, Vincent Onyemah - How Right Should the Customer Be?,

Harvard Business Review Special Double issue: Sales, July-August 2006, pg. 58-67

Jerome A. Colletti, Mary S. Fiss - The ultimately accountable job. Leading todays sales organization, Harvard Business Review Special Double issue: Sales, July-August 2006, pg. 124-131

AEThe Challenges of the Sales Manager in the Current Business Environment

Robert S. Kaplan, David P. Norton Mastering the Management System, Harvard Business Review Special Double issue: Leadership & Strategy, January 2008, pg. 62-77

*** Management, business and financial occupations, Occupational Outlook Handbook, US Department of Labor Bureau of Labor Statistic, Bulletin 2700, January 2008

*** Sales occupations, Occupational Outlook Handbook, US Department of Labor Bureau of Labor Statistic, Bulletin 2700, January 2008

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